CAVE Interactive CO.,LTD.
3760・Standard Market・Information & Communication
Business
Cave Interactive Co., Ltd. is a game development company founded in 1994, currently forming a group of 14 companies including the company itself and 5 consolidated subsidiaries. In its core Game Business, the company develops and operates smartphone games such as "Gothic wa Mahou Otome ~Sassato Keiyaku Shinasai!~" and "Touhou Gensou Eclipse" in-house, while also operating popular titles such as "Monster Strike" and "Kingdom Ran -Tenka Touitsu e no Michi-" through its consolidated subsidiary Delegate Corporation. As a second pillar, the Video Streaming-Related Business, conducted through capable Co., Ltd. and Success Plus Co., Ltd., provides support and management for internet video streamers as well as SNS advertising business. Major customers are MIXI, Inc. (51.9% of sales), Apple Inc. (24.9% of sales), and Google LLC (11.9% of sales), together accounting for approximately 88% of sales.
Business Model
In the Game Business, in-app purchase revenue from smartphone games is collected via platforms such as Apple, Google, and MIXI, with income recognized net of fees. Collection agency fees recorded within selling, general and administrative expenses amount to ¥1,488 million. The company also utilizes contract development and production committee formation to diversify development risk. In the Video Streaming-Related Business, contract revenue is accumulated through streamer management and SNS advertising. Gross profit margin stands at 37.44%.
Company Strengths
"Gothic wa Mahou Otome ~Sassato Keiyaku Shinasai!~" celebrated its 10th anniversary of service in May 2025, maintaining user engagement through initiatives such as a fan meeting held in Akihabara. "Kingdom Ran -Tenka Touitsu e no Michi-" also marked its 7th anniversary and continues to be operated stably. The existence of multiple long-running titles ensures the sustainability of revenue.
In September 2022, the company acquired all shares of Deragee Co., Ltd. and consolidated it. Favorable performance driven by popular IP collaboration events for "Monster Strike" has continued, and it remains the main source of revenue for the Game Business, which recorded net sales of ¥12,824 million in the current consolidated fiscal year.
Following the consolidation of Success Plus Co., Ltd. as a subsidiary in June 2024, net sales in the Video Streaming-Related Business expanded rapidly, increasing 362.3% year on year to ¥1,144 million. Segment profit also turned positive, reaching ¥18 million from a loss of ¥67 million in the previous fiscal year. Profit levels have continued to exceed goodwill amortization expenses.
ENVALITH's Perspective
Performance Trend
Consolidated net sales for FY2026 (ending May 2026) [note: fiscal year end appears to be May] came to ¥12,002 million (down 14.1% year on year), marking the first revenue decline since 2022. The company posted an operating loss of ¥608 million (versus operating income of ¥1,133 million in the prior period), an ordinary loss of ¥536 million, and a net loss attributable to owners of the parent of ¥2,799 million, with all profit indicators turning negative. The main cause of the net loss was an impairment loss of ¥2,657 million recorded as an extraordinary loss, including impairment on "OUTRANKERS" and other assets. The equity ratio declined from 38.8% to 27.3%, and net assets per share roughly halved from ¥853.16 to ¥415.65. Cash and cash equivalents stood at ¥5,251 million, maintaining a certain level of liquidity. There are no material events or conditions raising substantial doubt about the company's ability to continue as a going concern. Five-period trend (net sales): ¥1,409 million → ¥6,963 million → ¥12,274 million → ¥13,969 million → ¥12,002 million.
Growth Strategy
Following the completion of portfolio restructuring, the company aims to restore a profitable business model through new IP development, overseas expansion, and AI-driven efficiency improvements, with Dela Game's stable earnings as the core pillar
A new version of "Dodonpachi Daifukkatsu," originally released in 2008, is under development for Steam, adding new stages, characters, and BGM. New stage information has already been released on the official X account, with multifaceted promotional activities to be rolled out sequentially. Revenue contribution is expected during FY2027 (ending March 2027)*.
The company transferred all shares of its unprofitable video streaming subsidiary capable, and carried out impairment processing on "OUTRANKERS" and other assets. Software assets have been significantly reduced, limiting the risk of further impairment. Financial soundness has been strengthened through the selection and concentration of management resources.
Success Plus, consolidated as a subsidiary in June 2024, aims to secure overseas market revenue by entering the Licensing Business while maintaining stable revenue from the Contract Development Business. It continues to generate profit levels exceeding goodwill amortization expenses.
Ahead of FY2027 (ending March 2027)*, the company will implement group-wide cost reductions while promoting operational efficiency through AI adoption, aiming to improve its profit structure. This is a prerequisite measure for achieving the FY2027 (ending March 2027)* target of operating profit of ¥1,450 million (operating profit margin of 13.8%).
Last updated: July 17, 2026